VOLTAS LIMITED BOMBAY Vs. UNION OF INDIA

JUDGEMENT

(1.) These appeals have been filed under Section 55, of the Monopolies and Restrictive Trade Practices Act, 1969 (hereinafter referred to as 'the Act') against the judgment and order of the Monopolies and Restrictive Trade Practices Commission (hereinafter referred to as 'the Commission').

(2.) The appellant had entered into agreements with large number of companies, who are respondents in different appeals, in respect of distribution of different machineries and equipments within different territories of India. The companies, who are respondents, to the different appeals have been manufacturing different types of machines and instruments, which under the terms of the agreements are to be distributed by the appellant as the Marketing Company. The appellant has been appointed as Buyer (Sole Importer) on the terms and conditions mentioned in different agreements.

(3.) On 26-11-1986, notices were issued under Section 10 (a) (iii) read with Section 37 of the Act, informing the appellant that the agreements between the appellant and the different companies, some of which have their Head Offices in foreign countries contain conditions which amount to restrictive trade practices under clauses (a) and (c) of Section 33 (1), of the Act. In the notices aforesaid, the terms and conditions in different agreements which are alleged to be violative of Section 33 (1) (a) and (c) of the Act were reproduced. Pursuant to the notices aforesaid, show cause was filed in different cases initiated by the Commission against the appellant. Documents and affidavits were also filed on behalf of the appellant in support of its stand that none of the agreements referred to in the notices issued to the appellant related to restrictive trade practices, calling for any action under the Act. The Commission, however, by the impugned judgment and order directed the appellant in respect of each of the 15 enquiries to discontinue the restrictive trade practices as mentioned in the Notice of Enquiry, and not to repeat the same in future. It was also directed that the objectionable clauses, as mentioned in the Notices be deleted from the respective agreements, within 8 weeks of the receipt of the said order.